Definition
- Free trade
- Free trade is trade in which countries allow each other's imports without tariffs, quotas or other barriers set by government.
- Not to be confused with: Protectionism
- Protectionism is government policy to reduce or block imports, often to shield domestic producers and workers from foreign competition.
Test yourself
What is the difference between free trade and protectionism?
Protectionism puts barriers in the way of imports; free trade removes them.